ALTA Reports: 21% Increase in Title Insurance Premiums by Volume
The title insurance industry has had a fantastic year. Due to market conditions, title insurance premium volume has steadily increased over the last two years. The American Land and Title Association (ALTA) reports the land title industry has experienced a net operating gain of $504 million in 2012, as compared to a loss of $20 million in 2011.
Michelle Korsmo, CEO of ALTA says that the land title industry is in a good position. “The land title industry has come out of the real estate crisis well positioned to meet the needs of homeowners and homebuyers in the future.”
Despite an increase in statutory surplus of 33 percent to $3.5 billion in this past year, claim settlements have kept the statutory reserves down $372 million.
According to Korsmo, ALTA takes a preventative viewpoint when it comes to decreasing claim settlements. “The land title industry seeks to prevent claims through up-front preventive measures performed by title agents before a policy is issued and therefore the industry’s claims ratio is different than other lines of insurance.”
Not only is the title industry as a whole looking increasingly stable, but so are individual states. On a state-by-state basis, 48 states reported writing an increased number of title insurance premiums in 2012 in comparison to 2011. Illinois and North Dakota had the highest insurance premium percent increases at 43 and 42, respectively. The state with the highest increase in title insurance premiums generated was California with a 25% year over year increase.
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